Proposed Cut in Non-Profits Postal Rates Does Not Sit Well With Local Organizations

Ellen Gilbert

The news of a proposed change (for the worse) in reduced postal rates for non-profits has been disconcerting, to say the least, to the heads of local non-profits.

A change would affect us quite a bit, said Princeton Arts Council Executive Director Jeff Nathanson, We send most or all of our event, exhibition, and other mass mailings at the nonprofit bulk rate.

Princeton Senior Resource Center Executive Director Susan Hoskins is also worried. We send Mature Princeton out to 3,100 households every month at bulk mail rates. Not only does this inform people about what we are doing every month, but we include a lot of information about issues that affect lives, like changes in Medicare. We also include information about other local resources. I know that there are many who read the bulletin even though they do not come to programs. We could never afford to pay full first class postage.

The Postal Reform Act (H.R. 2309), recently introduced in Congress by Representative Darrell Issa (R-CA), includes the provision that would cut into reduced mail rates for non-profit organizations.

According to Mr. Issa, reducing non-profits bulk-mail discount from 40 percent to 10 percent over a six-year period would eventually save the beleaguered United States Postal Service (USPS) $1.7 billion per year. The Postal Service lost $8.5 billion last year and projects that it will lose $9 billion this year.

The reduced postal rate for non-profits dates back 60 years; current rates went into effect in July, 2007.

Citing the preliminary nature of the bill, Congressman Rush Holt (D-12) has yet to take a formal position on it. But, added Mr. Holts spokesperson Thomas Seay, he is troubled by several provisions of it, including the elimination of reduced rates for nonprofit mail and the elimination of Saturday deliveries.

The legislative process may be in its early stages, but its already making headlines. Measure to Eliminate Nonprofit Mail Discount Could Cripple Fundraising, noted a recent story in the Huffington Post.

Many organizations have switched over to electronic newsletters, and we will be adding that option this year, said Ms. Hoskins, adding, however, that it is very clear that the population we serve does not look for information on the internet as do younger people. It would be a great loss to older adults to lose this important vehicle for communication.

Congress cant keep kicking the can down the road on out of control labor costs and excess infrastructure of U.S. Postal Service (USPS) and needs to implement reforms that arent a multi-billion dollar taxpayer funded bailout, observed Mr. Issa in a recent press release from his office. The legislation will also remove what he described as legal hurdles that USPS currently faces when it comes to reducing costs, including allowing financially unsustainable retail postal facilities to be closed.

The Nonprofit Quarterly recently reported that while The Association of Fundraising Professionals opposes the part of Issas plan that pertains to nonprofit bulk mail it supports the rest of its provisions, which include eliminating 120,000 postal jobs and moving remaining employees out of federal benefits systems.